Company Overview - Duos Technologies Group, Inc. is based in Jacksonville, Florida, and operates through its wholly owned subsidiaries, focusing on intelligent technology solutions for Machine Vision and Artificial Intelligence applications [4] Upcoming Conference Call - The company will hold a conference call on March 31, 2025, at 4:30 p.m. Eastern time to discuss its financial results for the fourth quarter and full year ended December 31, 2024 [1][2] - Financial results will be released via press release prior to the call, and the call will include a question-and-answer period [1] Conference Call Details - Participants are encouraged to call 5-10 minutes before the start time, with U.S. dial-in number being 877-407-3088 and international dial-in number being 201-389-0927 [2][3] - The conference call will be broadcast live and available for online replay via the investor section of the company's website [3]

Core Insights - The grand opening of an advanced Edge Data Center (EDC) by Region 16 Education Service Center in collaboration with Duos Edge AI is set for March 18, 2025, marking a significant advancement in connectivity and AI-driven education for the Texas Panhandle [1][3][4] - The partnership with FiberLight aims to enhance digital access for schools, create jobs, and strengthen regional infrastructure, contributing to long-term growth and innovation [1][4] Company Overview - Duos Edge AI, a subsidiary of Duos Technologies Group, focuses on deploying high-powered edge computing solutions to underserved communities, particularly in education and healthcare [6] - The company specializes in Edge Data Center solutions that minimize latency and optimize performance, with capabilities of providing over 100 kW per cabinet and rapid deployment within 90 days [6] - Duos Edge AI aims to position its data centers within 12 miles of end users, significantly closer than traditional data centers, facilitating real-time data processing [6] Industry Impact - The new EDC is expected to transform learning experiences for students and educators, while also laying the groundwork for economic growth and improved public services in the Texas Panhandle [4] - FiberLight's extensive fiber network, comprising over 19,000 route miles, will support the digital transformation of various sectors, including education, government, and enterprise [8]

Core Insights - New APR Energy is deploying over 100MW of mobile gas turbines to a major U.S.-based AI hyperscaler, with installation expected to be completed in 10 days [1][2] - The mobile gas turbine fleet provides a fast and flexible power solution, addressing challenges in securing power from local utilities for data center expansion [2] - The gas turbines are part of a power generation portfolio acquired by Fortress Investment Group, which includes a total of 850MW from the original APR Energy [3] Company Overview - New APR Energy specializes in rapidly deployable mobile power solutions for data centers and utility operators, with over 100 years of combined experience in the sector [5] - Fortress Investment Group manages $49 billion in assets as of September 30, 2024, serving approximately 2,000 institutional clients and private investors globally [6] - Duos Technologies Group operates in three major business lines: Machine Vision/AI Intelligent Technology, Edge Data Center Infrastructure, and Power Solutions [7] Leadership and Future Plans - Chuck Ferry, Chairman and CEO of New APR Energy, expressed excitement about the deployment and indicated ongoing discussions with other data center operators for similar projects [4] - The company aims to leverage its experienced team to achieve immediate success in the power and data center sector [4]

Core Insights - Duos Technologies is set to present at the Microcap Conference 2025, highlighting its strategic initiatives and growth potential in the microcap sector [1] Company Overview - Duos Technologies focuses on providing advanced technology solutions, particularly in the transportation and logistics sectors, aiming to enhance operational efficiency and safety [1] - The company is positioned to leverage its innovative technologies to capture market opportunities and drive revenue growth [1] Industry Context - The microcap sector is characterized by high volatility and potential for significant returns, making it an attractive space for investors seeking growth opportunities [1] - Presenting at the Microcap Conference allows Duos Technologies to engage with potential investors and industry stakeholders, fostering relationships that could lead to future collaborations and investments [1]

Core Insights - Duos Technologies Group, Inc. has been granted a new patent for its obliquevue® system, enhancing railcar inspection through advanced imaging and AI analytics [1][3] - The obliquevue® technology is integrated with Duos' Railcar Inspection Portal (RIP®), which is recognized as an industry standard for real-time railcar analysis [2][3] - In 2024, Duos' imaging systems scanned nearly 10 million railcar images, indicating significant adoption of its innovative solutions [2] Company Developments - The new patent solidifies Duos' position as a leader in intellectual property within the rail industry, with a total of 11 granted patents and 6 pending applications [4] - The obliquevue® system enhances detection of anomalies that traditional systems may miss, ensuring compliance with safety standards set by the Association of American Railroads (AAR) and the Federal Railroad Administration (FRA) [3][4] - Duos is expanding its capabilities to include edge data processing and subscription-based services for customized rail data, further innovating within the rail sector [4]

Core Insights - Duos Technologies Group, Inc. has successfully closed an Asset Management Agreement with Fortress Investment Group, involving a fleet of 30 mobile gas-powered turbines capable of generating 850 megawatts of power, estimated to generate $42 million in revenue over two years and a 5% equity stake in the new venture [1][2][4] Group 1: Partnership and Asset Management - The assets will be managed in partnership with Fortress, providing a fast-track solution to meet urgent energy demands in critical sectors such as data centers [2][3] - The transaction was finalized on December 31, 2024, after fulfilling customary closing conditions and regulatory approvals [2] Group 2: Strategic Focus and Market Demand - Duos Energy Corporation, a subsidiary of Duos Technologies, will oversee the management and deployment of the turbine fleet to address growing energy demands across various sectors [3][5] - The company is actively engaging with U.S.-based data center developers and international energy projects for immediate deployment of the turbines, emphasizing its mission to deliver agile and scalable energy solutions [5] Group 3: Company Background - Duos Energy Corporation specializes in developing, owning, and operating sustainable energy projects, focusing on clean-burning natural gas generation and rapid deployment of off-grid power plants [6] - Fortress Investment Group manages $49 billion in assets as of September 30, 2024, serving approximately 2,000 institutional clients and private investors globally [7]

Core Insights - Duos Technologies Group, Inc. is partnering with Pampa Economic Development Corporation and Pampa Energy Center to develop high-density Data Center Development Parks in Pampa, Texas, utilizing up to 500MW of natural gas self-generation and 200MW of wind turbine generation [1][2][3] Company Overview - Duos Edge AI, a subsidiary of Duos Technologies, specializes in deploying adaptive and scalable data center solutions, aiming to support four 50MW high-density data centers in Pampa [2][9] - Duos Energy Corporation focuses on sustainable energy projects, providing rapid deployment of dedicated off-grid power plants, and has signed an agreement to manage 850MW of mobile gas turbines [4][10] Economic Impact - The project is expected to transform Pampa's infrastructure, create jobs, and drive technological and economic growth, positioning Pampa as a leader in the High-Density Data Center landscape [1][3][7] - The partnership is seen as a significant step towards diversifying Pampa's commercial and industrial base, leveraging its location in the heart of the wind energy sector for economic growth [7][8] Project Timeline - The first 50MW high-density data center is planned to be operational by the end of 2025, with the project covering over 500 acres [2][4]

Revenue Growth - Total revenue for Q3 2024 increased 112% to $3.24 million compared to $1.53 million in Q3 2023, with approximately $1.685 million from technology systems and $1.55 million from recurring services and consulting[6] - Total revenues for the three months ended September 30, 2024, increased to $3,238,910, a 111.1% increase from $1,530,923 in the same period of 2023[29] - Technology systems revenue rose to $1,686,456, up 138% from $705,849 year-over-year, while services and consulting revenue increased to $1,552,454, up 88% from $825,074[29] Profitability and Loss - Gross margin for Q3 2024 increased 306% to $919,000 compared to $226,000 in Q3 2023, primarily due to a change order related to high-speed Railcar Inspection Portals[8] - The net loss for the three months ended September 30, 2024, was $(1,401,663), an improvement from $(2,947,736) in the same period of 2023[29] - Net loss for Q3 2024 totaled $1.40 million, a 53% decrease from a net loss of $2.95 million in Q3 2023, driven by increased revenues and reduced operating costs[11] Operating Expenses - Operating expenses for Q3 2024 decreased 11% to $2.84 million compared to $3.20 million in Q3 2023, attributed to reductions in development and administrative costs[9] - Total operating expenses decreased to $2,839,379 for the three months ended September 30, 2024, down from $3,197,565 in the same period of 2023, a reduction of 11.2%[29] Cash and Assets - Cash and cash equivalents at September 30, 2024, totaled $0.65 million, down from $2.44 million at December 31, 2023, with over $2.21 million in receivables and contract assets[12] - Total assets increased to $22,024,867 as of September 30, 2024, compared to $12,842,285 at the end of 2023, reflecting growth in the company's asset base[32] - Cash and cash equivalents decreased to $613,594 as of September 30, 2024, down from $2,441,842 at the end of 2023[32] Liabilities - Total liabilities rose to $19,512,398 as of September 30, 2024, compared to $7,475,771 at the end of 2023, indicating increased financial obligations[32] - Accounts payable increased significantly to $1,131,552 from a negative $1,670,625 in the previous year[35] Future Outlook - The company anticipates improved operating results over the next 12 months due to new initiatives and market opportunities[21] - The company expects to provide further updates on growth, particularly in 2025 and beyond, as new businesses and market opportunities are established[22] Other Financial Metrics - The company reported a basic and diluted net loss per share of $(0.18) for the three months ended September 30, 2024, compared to $(0.41) in the same period of 2023[29] - Net loss for the nine months ended September 30, 2024, was $7,358,143, compared to a net loss of $8,080,819 for the same period in 2023, indicating an improvement[35] - Net cash used in operating activities increased to $6,200,147 for the nine months ended September 30, 2024, from $5,637,072 in the prior year[35] - Net cash used in investing activities was $1,555,544, up from $898,435 in the same period last year[35] - Net cash provided by financing activities was $5,959,962, a decrease from $8,681,331 in the previous year[35] - The company reported a depreciation and amortization adjustment of $1,472,965 for the nine months ended September 30, 2024, compared to $393,057 in the prior year[35] - The company issued $2,995,002 in preferred stock during the period, compared to $9,000,000 in the previous year[35] - The company reported a gain on settlement of warrant liabilities amounting to $379,626[35] - The company had a significant increase in inventory, with a change of $197,777 compared to a decrease of $97,552 in the previous year[35] Railcar Scanning - The company performed over 2.3 million railcar scans across 13 portals, scanning more than 379,000 unique railcars, representing approximately 24% of the total freight car population in North America[4]

Financial Data and Key Metrics Changes - Total revenue for Q3 2024 increased 112% to $3.24 million compared to $1.53 million in Q3 2023, driven by a $1.4 million contract modification for Railcar Inspection Portals [14][19] - Gross margin for Q3 2024 increased 306% to $919,000 compared to $226,000 in Q3 2023, primarily due to high revenues from Railcar Inspection Portals [17] - Net loss for Q3 2024 totaled $1.4 million, a 53% reduction from a net loss of $2.95 million in Q3 2023, attributed to increased revenues and reduced operating costs [20][21] Business Line Data and Key Metrics Changes - Duos Edge AI expanded with three new Edge Data Centers, totaling six ready for deployment, with significant commercial demand for colocation services [8][34] - Railcar Inspection Portal business is progressing with ongoing installations and new agreements, including a partnership with a Class I railroad customer [9][37] - Recurring services and consulting revenue increased by 88% quarter-over-quarter, driven by new AI and subscription customers [14] Market Data and Key Metrics Changes - The company has over 35 power opportunities, primarily from data center developers, indicating strong demand in the power sector [31] - At the end of Q3, the company's backlog exceeded $18.8 million, with $10 million related to data access for a new subscription business [23][24] Company Strategy and Development Direction - The company aims to diversify its business and accelerate profitability, with a focus on the power sector and Edge Data Centers [6][32] - A strategic partnership with Fortress Investment Group was formed to manage 850 megawatts of power generation assets, expected to generate $42 million in revenue over two years [7][32] - The company plans to deploy at least 15 Edge Data Centers by the end of 2025, with potential partnerships with hyperscalers to accelerate deployment [35][79] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving profitability in 2025 due to new initiatives and expected growth in various business lines [32][25] - The operating environment is characterized by high demand for power solutions, particularly in the data center sector, with challenges related to equipment availability [56][57] Other Important Information - The company implemented a 5% reduction in staff in early Q3 2024 to manage costs effectively [18] - The balance sheet remains stable, with approximately $646,000 in cash and over $2.21 million in receivables as of September 30, 2024 [22] Q&A Session Summary Question: Did you say that the assets you will be deploying and managing are the same ones you used to work with at APR? - Yes, the assets are the same, and the management team is very familiar with them [44] Question: Is the $42 million revenue over two years guaranteed? - The revenues are estimated based on a business plan developed with Fortress Investment Group and are not guaranteed [46] Question: Who are your competitors in the power and data center business? - In the Edge Data Center business, there are few direct competitors currently, while the power sector is more competitive with larger OEMs [55][56] Question: What is the expected subscription revenue from the Rail business in 2025? - The forecast for subscription revenue from the railcar subscription business is about $2 million to $3 million [81][82]

JACKSONVILLE, Fla., Nov. 20, 2024 (GLOBE NEWSWIRE) -- Duos Technologies Group, Inc. (“Duos” or the “Company”) (Nasdaq: DUOT), is pleased to announce that its operating subsidiary Duos Energy Corporation has signed a two-year Asset Management Agreement (“AMA”) to deploy and operate a fleet of mobile gas turbines and balance-of-plant inventory (“the portfolio” or “the assets”) that has a combined generation capacity of 850 megawatts. The AMA has been signed with affiliates of Fortress Investment Group (“Fortr ...